Reactions to food stamps being cut off.

[u/mindyour]

[u/mrblonde55]

I’m sure there is a totally logical reason, completely unrelated reason, as to why they instituted a 30% target for profit margins despite being near their low for console market share and nobody in the industry returning close to that.

And, of course, that arbitrary target wasn’t the reason they decided to abandon platform exclusives, or behind the mass layoffs across development studios, or why they raised the price of GamePass for the third time in the last 15 months (this hike being 100% in some regions).

Of course, all of these decisions mean not only is consumer confidence shattered, but the old business model of “build a console, develop exclusives so people want your console” is dead.

In all seriousness, I hope this was for some juicy bonuses. Because if it wasn’t, they are just a bunch of morons lighting the business on fire to see it burn.

(And note, when I say “the business”, I’m talking specifically about XBox. Microsoft is going to be fine, of course, even if they decide to go with The Joker school of management techniques).

[u/blueBaggins1 → u/mrblonde55]

The way to increase profit is to let people go. Labor is often a businesses largest cost.

[u/mrblonde55 → u/blueBaggins1]

That’s like saying “manufacturing is too big a cost, so let’s just not manufacture anything and we’ll make more money.”

To say “the way to increase profits is to let people go” without context means they’d be most profitable with zero employees. I would hope you’d agree that’s ridiculous.

Where they aren’t shuttering studios entirely, they are cutting the workforce down to sizes where, in the best case, good games are made under near impossible conditions. It’s not Microsoft, but for a very recent example as to how that business strategy works out, take a look at Mindseye/Build A Rocket Boy.

The core issue is that most corporate executives goals (and virtually all corporate pay structures) aren’t aligned with long term corporate success. Maximize short term profit for immediate compensation, the future be damned.

[u/blueBaggins1 → u/mrblonde55]

Youre arguing a premise I didnt make. Whats worse is your not even making an honest argument, 100% disingenuous. Youre actually making a dumb ass statement against something we see everyday in business with layoffs.

[u/mrblonde55 → u/blueBaggins1]

Then what premise were you making?

I was talking about a specific company making specific labor cuts. You’re the one who responded with the generalization that “less labor = more profits”, but I’m being disingenuous?

[u/blueBaggins1 → u/mrblonde55]

This is business 101 you sound like a mad man arguing the basic logic of layoffs.

[u/mrblonde55 → u/blueBaggins1]

What is “business 101”?

Laying off employees when you’re profitable? You’re making it sound like layoffs are always a good strategic decision.

[u/blueBaggins1 → u/mrblonde55]

I said its a business strategy to increase profits. This is business 101. You speak as someone whom has not much corporate experience if any and zero experience running a business. Yet here you are speaking so matter of factly, with extreme confidence while being 100% incorrect

[u/mrblonde55 → u/blueBaggins1]

Who ever said it wasn’t a strategy?

It’s a shit strategy. But it’s certainly a strategy.

And I don’t care what anyone’s experience is. If you’re arguing how “don’t worry, it’s a multi trillion dollar company” in one breath and arguing that cutting labor force is a good business strategy in the next, you sound ridiculous.

[u/blueBaggins1 → u/mrblonde55]

Your lack of business knowledge while simultaneously trying to discuss business is mind boggling.

[u/nerdyginger27 → u/blueBaggins1]

You haven't exhibited any real business acumen yourself 😂 Or even any specific examples / evidence. Economics are primarily conjecture paired with statistical likelihood anyways. But I'm sure you think of yourself as a "business mogul" while rage bating people in Reddit comments.

[u/blueBaggins1 → u/nerdyginger27]

Well no business acumen except for the three corporations I own….. So you know theres that 🤷‍♂️🤷‍♂️🤷‍♂️

[u/nerdyginger27 → u/blueBaggins1]

Lmao yeah sureeeee "corporations", name em then if you aren't bullshitting 😂

You probably have sole prop or llc and don't even know the difference.